Company Background

The Company was incorporated in Malaysia under the Act on 16 May 2023 as a private limited company under the name of Agricore CS Holdings Sdn Bhd. On 11 September 2023, the Company was converted into a public limited company and adopted its present name.

The Group structure as at LPD is as follows:

The Company is principally an investment holding company. Through its subsidiaries, the company is principally involved in the sourcing, distribution and production of food ingredients.

Use of proceeds

1. Setup of a regional storage facility - 10.3% (within 12 months)
2. Purchase of inventories - 73.2% (within 12 months)
3. Recruitment of staff - 2.2% (within 12 months)
4. Estimated listing expenses - 14.3% (within 1 month)

Setup of a regional storage facility - 10.3% (within 12 months)

The Group intends to allocate RM2.7 million, representing 10.3% of the gross proceeds from the Public Issue as setup costs for the regional storage facility, details of which are as follows:

Once the setup of the regional storage facility in October 2024 is completed based on the estimated timeline, the company will commence its operations immediately.

The indicative timeline for the setup the regional storage facility is as follows:

Purchase of inventories - 73.2% (within 12 months)

The Group intends to allocate RM18.9 million, representing approximately 73.2% of the gross proceeds from the Public Issue, to increase the inventory levels to support its business growth, of which RM13.7 million will be utilised to purchase inventory for the Bukit Minyak Premises and the remaining RM5.2 million will be utilised to purchase inventory for the new regional storage facility. The purchase of inventories mainly comprise the 3 main categories of primary plant-based agricultural food ingredients.

Recruitment of staff - 2.2% (within 12 months)

The Group intends to allocate RM0.6 million, representing approximately 2.2% of the gross proceeds from the Public Issue, to recruit additional staff in Bukit Minyak Premises to support the expected growth in the business operations, details of which are as follows:

Business model

The company is principally involved in the sourcing, distribution and production of food ingredients. The core business activities are segmented as follows:

1. sourcing and distribution of plant-based agricultural food ingredients comprising starch products, beans and pulses, grain products and other related products; and
2. production and sale of food additives and fried shallots.

The business model can be summarised as below:

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